English• The General Secretariat of the Government notified the office of the General Prosecutor of the way it acquired ownership of a building included in the Peleş estate"
• The General Prosecutor Office declined its jurisdiction and sent the case to the National Anticorruption Department on suspicion of corruption, after the public clerks registered the property in the Land Registry without having received permission of the Public Corporation for the Administration of the State"s Assets
• The action of the General Secretariat of the Government could halt the negotiations for the extension of the rental contract of the Peleş Castle, the lawyer of the Royal Family claims
The retrocession of the Peleş - Sinaia estate, which began three years ago as a remedy to the Royal Family, after the illegal seizing of its assets in 1948, could spark a major scandal.
The General Secretariat of the Government (SGG) notified the General Prosecutor"s Office, in September 2009, asking it to investigate the way the Royal Family came into possession of a building which was part of the Peleş estate.
The General Secretariat forwarded a report of the Investigative Body of the Prime-Minister to the Prosecutor"s Office, which showed that the royal family acquired ownership of a building in the Furnica Holiday Resort by violating the terms of the decision of the Public Corporation for the Administration of the State"s Assets (RA-APPS) by which the ownership of the estate reverted to the Royal Family (ed. note: Decision no. 461/2006).
Even though the state acknowledges the right of the Royal House to claim restitution of the Peleş estate, there is still a disagreement on the amount of the compensation that the state claims it is owed by the Royal House for having managed the estate since 1948.
The state estimates that it is entitled to receive 10 million Euros, but the Royal House is only willing to pay 2.5 million Euros, or to eventually cede ownership of some of the buildings that it will recover, claiming that the "unilateral" appraisal of the RA-APPS is unrealistic.
The attorney of the Royal Family, Adrian Vasiliu, said: "The Royal Family does not acknowledge the amount of 10 million Euros, since it it the result of a unilateral appraisal by the RA-APPS, based on exaggerated management fees and prices per square meter.
"However, if we use the same yardsticks that the RA-APPS used for the appraisal of the land and the buildings on the Peleş Estate that the King is offering as compensation to the RA-APPS, on the grounds of the Decision 461/2006, then their value will fully cover the amount requested by the RA-APPS, which means neither side loses".
On a different note, the Government is trying to find out why some clerks of the Ploieşti National Cadastral and Real Estate Advertising Office recorded the transfer of ownership of the property in the Land Registry without the agreement of the RA-APPS, without signing the handover protocol, and obviously, without payment of any compensation.
For this reason, the General Prosecutor"s Office, declined jurisdiction and assigned the matter to the National Anticorruption Department, due to suspected acts of corruption by public clerks.
However, the problem seems to be caused by the diverging interpretations of the Law 10/2001 concerning the legal status of buildings abusively seized between March 6th 1945 - December 22nd, 1989.
While the RA-APPS filed a criminal complaint against the public clerks of the Office for abuse of office against the public interest, the attorney of the Royal House claims that the approach was perfectly legal.
Adrian Vasiliu said: "The registration of a building in the Land Registry gets done on the grounds of the restitution decision, after it becomes definitive. Recording the change of ownership in the Land Book does not require a prior deed confirming the change of ownership. Rather it"s the other way around, the registration in the Land Registry comes first, then comes the transfer of ownership, according to the Law 10/2001".
When asked for confirmation, the officials of the National Anticorruption Department said that this type of information is not public.
However, lawyers think that in this case, the investigation of the National Anticorruption Department could go as far as summoning members of the Royal Family to appear in court.
"The aspects on compliance with the legislation in the process for the restitution in kind by RA-APPS to His Majesty King Michael the First, of several buildings located in Sinaia, by way of the Decision no. 416/2006, will be solved according to the provisions of the law, officials of the General Secretariat of the Government said.
This scandal could affect Romania as a whole.
The Royal Family is rather unhappy with the fact that the State is requesting compensatory payments, after having used the Peleş domain for over 50 years for free.
The lease contract for the Peleş castle, a historical monument visited by 250,000 tourists every year, will expire this month. The Royal Family will also raise this issue in its talks with the Ministry of Culture, even though its disagreement is with another public institution.
"We will discuss this matter, because it is abnormal to have an agreement on the lease of the Peleş, on one hand, but to have it challenged by another institution of the state", the lawyer of the Royal House concluded.
• How we got here
Three years ago, the liberal government had began to remedy of the injustices of Romania"s history. The Royal Family got back its Peleş estate, after 17 years of dallying. However, the Royal Family only received the Peleş castle, while the other buildings which were part of the old estate of the Crown continued to be administered by the Public Corporation for the Administration of the State"s Assets (RA-APPS), even though their ownership had reverted to the Royal Family by way of a Government Decision.
- The former head of the RA-APPS signs the Decision 461/2006 by which the assets of the Peleş Domain revert to the royal family.
- RA-APPS requests compensatory payments of 10.7 million Euros, but the Royal Family only offers 2.5 million Euros.
- The Royal Family succeeds in having the Peleş Castle recorded in the Land Book, without signing the handover protocol with RA-APPS, and according to claims by the SGG, without paying the afferent compensation.
- The parties fail to reach an agreement on the compensations owed and on the appraisal of the assets.
- The Royal House claims that freezing the restitution proceedings due to disagreements on compensation is immoral, given the fact that the state used the Peleş estate for 60 years for free.
- On June 1st, 2009, based on the registration in the Land Registry, the Enforcement officer of the Court of Appeal of Ploieşti demands that RA-APPS "surrender the premises and allow the owner the quiet enjoyment and peaceful possession" of the Furnica Holiday Resort, together with its afferent land with a total surface of 7,708 sqm.
- RA-APPS files a criminal complaint against the public clerks of the National Cadastral and Real Estate Advertising Office of the County of Prahova.
- On June 10th, the General Secretariat of the Government asks the Investigation Body of the Prime Minister to investigate this case.
- In September 2009, the General Secretariat of the Government remits the report of the Investigative Body of Prime Minister to the Prosecutor"s Office of the High Court of Cassation and Justice (PICCJ).
- The Prosecutor"s Office declines jurisdiction to the National Anticorruption Department.
[The Royal House claims that the notifications of the General Secretariat of the Government are blocking the transaction
• What does the Royal House get by way of the Decision 461/2006 of the A RA-APPS
- "The Foişor Palace" - the old wing, together with the afferent land of 47,710 sqm .
- "The annex/Old Garden House, the New Garden House, the Doll"s House, the Greenhouses" and the afferent land with a total surface of approximately 114,257.91 sqm.
- "The Economat Hotel, the Villas no. 2 and 3, the food storage shed, the bakery building, several special buildings" and the afferent land with a surface of approximately 38,793 sqm.
- "The Economat Villa no. 1 - the administrative building, the annexes and appurtenances, special buildings" and the afferent land with a surface of approximately 32,600 sqm.
- "The Sipot villa" and the afferent land with a total surface of approximately 2,097 sqm.
- "The Vila Uzina Electrică" and the afferent land with a surface of approximately 4.243 mp.
- "The Cavaleri Villa" and the afferent land with a surface of approximately 1,110 mp.
- "The Furnica Holiday Resort" and the afferent land with a surface of approximately 7,706.08 sqm
- "The Vulpărie Cabin" and the afferent land with a surface of approximately 7.233 sqm
• The Royal House: "By this approach, the General Secretariat of the Government blocked the signing of the agreement"
The officials of the Royal House expressed their indignation on the evolution of this scandal.
The attorney of the Royal House, Adrian Vasiliu, said he was aware of the fact that the General Secretariat of the Government notified the Prosecutor"s Office in this case, but expressed his surprise at the fact that everything went as far as getting the National Anticorruption Department involved.
"The moment the General Secretariat of the Government notified the Prosecutor"s office, it blocked the transaction", Adrian Vasiliu, who also mentioned that had the GGS not taken this step, the deal would have gone through, since the issue of deciding which plots of land would be offered as compensation was close to being solved.
• The Investigation Body of the Prime-Minister: "The negotiation commission did carry out its mission"
"The commission which was supposed to negotiate the Memorandum of Understanding between the Romanian Government and His Majesty King Mihai I, on the terms for the retrocession of the Peleş Domain of Sinaia, did not operate appropriately and failed to carry out its mission, meaning that during the work sessions it failed to produce any document, minute, etc., which would record the discussions of the commission, the individuals present, and any eventual conclusions", the report of the Investigative Body of the Prime Minister states.
• Major real estate interests around the Furnica Holiday Resort?
The Furnica Holiday Resort, which was obtained by the Royal House, is located in Sinaia and dates back to 1906. According to some official sources, many politicians and businesspeople set their sights on it over time.
The fact that the notification of the General Secretariat of the Government came just as prince Radu Duda had submitted his candidacy for the presidency of Romania sparked speculation at the time.
What is also curious is the fact that according to our information, the Royal Family also recorded in the Land Registry the other eight buildings mentioned in the decision of the RA-APPS, but the institutions of the state are only concerned with the Furnica Resort.
Moreover, according to the results of the investigation by the Investigative Body of the Prime-Minister, the Furnica resort was returned without a new appraisal, even though it had been changed by adding new construction.
"The built area of the estate managed by the RA-APPS increased by 139.78%", the report by the Investigative Body of the Prime-Minister states.
However, the Royal House claims that the only additions to the built area are a terrace and a kitchen, meaning the built surface only increased by 39.78% (below the legal threshold by which 100%), sayin the percentages are interpreted in a biased manner.
Euro
Dolar SUA
Franc elveţian
Liră sterlină
Gram de aur
